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Telenor ASA — Earnings Release 2016
Feb 2, 2017
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Earnings Release
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Telenor Group fourth quarter 2016 results
Telenor Group fourth quarter 2016 results
Telenor reports fourth quarter 2016 results
"In 2016, Telenor continued to grow revenues and delivered a
record high EBITDA. We made significant progress on network
deployment during the year, supporting our customers'
increasing data usage. Based on the 2016 results, we are
proposing a dividend of NOK 7.80 per share, which represents
an increase of four per cent compared to last year.
During the fourth quarter, organic revenue growth was one
per cent and EBITDA increased by two per cent on an organic
basis. The revenue growth was primarily driven by the
rapidly increasing data consumption in Pakistan, Bangladesh
and Myanmar. We also saw positive effects from the ongoing
fibre roll-out in Norway and Sweden. The intense competition
in our Thai, Malaysian and Danish markets continued during
the quarter. Cost efficiency is a key driver for value
creation, and I'm pleased to see that effects from our
efficiency initiatives are starting to come through.
Entering 2017, our priorities are clear: We will continue to
digitize our core business in order to build strong and
engaging customer relationships and to capture the
efficiency opportunities that digitization brings," says
Sigve Brekke, Chief Executive Officer of Telenor Group.
FOURTH QUARTER 2016 SUMMARY
- Total revenues decreased by 1% to NOK 33.1 billion,
while the organic revenue growth was 1%.
Mobile subscription & traffic revenues increased by 1% on an
organic basis.
- EBITDA before other items was stable at NOK 10.8
billion, corresponding to an EBITDA margin of 33%, which is
a slight increase from last year.
- EBITDA before other items was negatively impacted by
a provision of NOK 0.3 billion related to a decision by the
Swedish Tax Agency regarding VAT treatment for 2013 and
2014. Excluding this effect, the organic EBITDA growth was
5%.
- Capital expenditure excluding licences and spectrum
was NOK 6.9 billion, resulting in a capex to sales ratio of
21%.
- As a result of lowered growth expectations within
the US media advertising segment, an impairment of NOK 1.0
billion has been recognised in Tapad, which is included in
Other Units.
- Reported earnings per share (EPS) for 2016 were NOK
1.89. Adjusted for effects related to VimpelCom, impairment
losses, other items and currency loss on repayment of
internal loans, the EPS was NOK 9.53.
- Based on the financial results for 2016, the Board
of Directors proposes a dividend of NOK 7.80 per share for
2016, to be paid out in two instalments. The proposal is in
line with Telenor's ambition to deliver a year over year
growth in dividends.
- In 2017, Telenor expects an organic revenue growth
in the range of 1% to 2% and an EBITDA margin of around 36%.
The capex to sales ratio excluding licences is expected to
be 15% to 16%.
Media Contact:
Meera Bhatia
mobile: (+47) 46 84 49 59
Investor Contact:
Marianne Moe
mobile: (+47) 91 61 76 31
Helge Øien
mobile: (+47) 91 31 92 42
Press and analyst presentation
In connection with the publication of the financial results,
a presentation will he held on Thursday 2 February at 10:00
am CET. The presentation, which will also be available via
webcast, will be held in Auditorium Voice, Telenor Expo
Visitor Centre at Fornebu near Oslo. CFO Jørgen C. Arentz
Rostrup will present the quarterly results. The presentation
will be held in English. There will not be a QA session
following the quarterly results as a result of Telenor's
Capital Markets Day 2017 being held the same day from the
same location. The Capital Markets Day programme begins at
11:00 am CET and will also be available via webcast. For
further details, see http://www.telenor.com/cmd
Material
The quarterly report and the presentation are available
here. http://www.telenor.com/investors/reports/2017/telenor-
groups-results-for-the-4th-quarter-2016/